TSP Center

Not really tied to TSP, but I was wondering how long you have to be with the government to get a pension once you retire. I'm not referring to social security pension. I'm referring to FERS.

I have heard and read different things. One states to have at least 5 years before you retire. Another says 5 cumulative years at a given time (meaning it doesn't have to be before you retire).

I'm thinking of taking a contractor job just to be close to my family. I've already put in almost 7 years in the government.

FERS Information ELIGIBILITY
https://www.opm.gov/retirement-services ... igibility/

Immediate Retirement
An immediate retirement benefit is one that starts within 30 days from the date you stop working. If you meet one of the following sets of age and service requirements, you are entitled to an immediate retirement benefit:
Eligibility Information
Age Years of Service
62 5
60 20
MRA 30
MRA 10

If you retire at the MRA with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.

To continue healthcare coverage into retirement, I believe you need 5 consecutive years of FEHB.

Suggest you google "FERS deferred retirement" You can still get pension at age 62, but it would be small (7% X Hi 3 Salary) under a deferred retirement but you wouldn't be entitle to FEHB coverage with only 7 years. Note: make sure your employment is creditable civil service--there are exceptions like part time/temporary positions. See https://www.opm.gov/retirement-services ... 92-19a.pdf

if you separated from Federal service with at least 5, but less than 10 years of service, and are now applying for a deferred annuity, you are not eligible to continue any health benefits, life insurance or Federal Dental and Vision coverage you had while employed.

Went to website but remained confused by this. So what if you put in 10 years but are not eligible to retire and decide to leave Fed service for an alternative job. Will you still receive pension at retirement? This is not clear to me.

roxy13 wrote:Went to website but remained confused by this. So what if you put in 10 years but are not eligible to retire and decide to leave Fed service for an alternative job. Will you still receive pension at retirement? This is not clear to me.

You may receive a pension at your Minimum Retirement Age but as Winner stated:

If you retire at the MRA with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.

e.g. Someone with 10 years of service with hi 3 average salary of $50,000
At age 62 = 10% x $50K = $5,000/Year
MRA=56 62-56 = 6 years 30% reduction $3,500/Year
MRA=57 62-57 = 5 years 25% reduction $3,750/Year

Wouldn't that someone who retires at 62 get the 1.1% multiplier instead of the 1%? Or does the retiree need to have a certain number of years of service in order to get the 1.1%?

I believe the 1.1% only applies at 62 if you have 20 or more years of service when you retire
Annuity Formala Age/Formula
If age 62 or older at retirement with less than 20 years of service, OR
under age 62 qualified for an immediate voluntary retirement / 1 percent of your high-3 average salary for each year of service
If age 62 or older with 20 or more years of service / 1.1 percent of your high-3 average salary for each year of service
see https://www.opm.gov/retirement-services ... mputation/

evilanne wrote:

roxy13 wrote:Went to website but remained confused by this. So what if you put in 10 years but are not eligible to retire and decide to leave Fed service for an alternative job. Will you still receive pension at retirement? This is not clear to me.

You may receive a pension at your Minimum Retirement Age but as Winner stated:

If you retire at the MRA with at least 10, but less than 30 years of service, your benefit will be reduced by 5 percent a year for each year you are under 62, unless you have 20 years of service and your benefit starts when you reach age 60 or later.

e.g. Someone with 10 years of service with hi 3 average salary of $50,000
At age 62 = 10% x $50K = $5,000/Year
MRA=56 62-56 = 6 years 30% reduction $3,500/Year
MRA=57 62-57 = 5 years 25% reduction $3,750/Year

Since you have another the job and don't want permanently reduced then DO NOT withdraw your contributions from FERS, you will be eligible at age 62, which is know as Deferred Retirement Annuity.

Does the high 3 avg include the base salary only or does it include the full salary with locality pay?

Thanks - good info. G

High 3 include locality pay without OT. For LEO then it include AUO.